What is the value of the three investments

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Problem 1: If the interest rate is 5% compounded annually, what is the value of the following three investments?

a. An investment that offers you $300 a year in perpetuity with the payment at the end of each year. (Round your answer to 2 decimal places.)

b. A similar investment with the payment at the beginning of each year. (Do not round intermediate calculations. Round your answer to 2 decimal places.)

Reference no: EM132984074

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